Buy Aave (AAVE): value and trends

What is Aave

AAVE is the token of one of the main decentralised finance (DeFi) protocols dedicated to lending and borrowing, i.e. lending crypto-assets between users without intermediaries. On Young Platform you can buy and sell the AAVE crypto-asset on a spot basis; the lending and liquidity-provision features described below belong to the Aave protocol, are managed by third parties and fall outside the services provided by Young Platform.

How the protocol works

On the protocol, users can deposit crypto-assets into liquidity pools or borrow them by providing collateral; borrowers can choose between fixed and variable rates. A feature historically associated with Aave is the “flash loan”, an uncollateralised loan that must be requested and repaid within the same transaction. Aave is among the leading DeFi protocols by total value locked (TVL), with tens of billions of dollars deposited on its smart contracts. Lending activities carry risks (including smart contract risk and collateral liquidation risk) and do not offer guaranteed returns.

Recent updates

In July 2023 the protocol launched its native stablecoin GHO, over-collateralised by the assets deposited on the platform. Development continued with version V3, which improved capital efficiency and risk management, and with its expansion onto new networks (including Sonic and Linea). The AAVE token is also used for protocol governance and for the system’s security mechanisms.

What it is and how it started

Aave is a long-standing DeFi project, founded in 2017 by Stani Kulechov; it is run by a company based in Switzerland that operates as a for-profit entity.